Is Mac Hotels overvalued or undervalued?

As of 23 September 2025, the valuation grade for Mac Hotels has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 36.60, an EV to EBIT of 32.33, and an EV to Sales ratio of 8.71. These figures suggest that the stock is trading at a premium compared to its earnings and sales, reflecting investor skepticism about its growth prospects.
In comparison with peers, Indian Hotels Co has a much higher PE ratio of 62.81, while EIH stands at 31.29, indicating that Mac Hotels is relatively less expensive among its peers despite its high valuation. The PEG ratio of 0.00 raises concerns about future growth potential, as it suggests that the stock may not be justified by its earnings growth. Additionally, Mac Hotels has underperformed the Sensex significantly year-to-date, with a return of -22.16% compared to the Sensex's 5.07%, reinforcing the notion that the stock is overvalued in the current market environment.